With so many boomers concerned about whether they’ll outlive their assets in retirement, it’s probably no surprise that they’d be interested in converting assets into guaranteed lifetime income to see them through.
And that’s exactly the word from the “Finding the Right Mix: LIMRA Retirement Attitudes and Preferences” study, from the LIMRA Secure Retirement Institute. The study found that half of all U.S. households of non-retired and retired people who have at least $100,000 in assets are interested in converting assets into guaranteed lifetime income for retirement.
“Our research shows that these demographic segments are less likely to have a defined benefit pension plan and will have to rely on their own assets to create retirement income,” Matthew Drinkwater, associate managing director, LIMRA Secure Retirement Institute, said in a statement.
“Our study,” he continued, “found 7 in 10 retirees and pre-retirees say having enough money to last their lifetime is a top priority, and nearly two-thirds want to remain financially independent in retirement.”
Even though they’d really like that guaranteed income, study responses indicated that not all consumers are storming the gates to convert their assets, thanks to concerns brought on by recent economic events.
The study said that the top concerns cited by pre-retirees and retirees were worries about guarantees potentially not keeping up with inflation; fear of locking in low rates of return; and lack of trust in companies backing the guarantees.
The groups most interested in converting assets to guaranteed lifetime income were those aged 50-59 (55 percent), those who were not yet retired (54 percent), and those with household assets between $100,000-$499,000 (52 percent). Those with the least interest were the retired (40 percent), those who were 65-75 years old (40 percent), and those with $1 million or more in assets (41 percent).